reward for his hitherto unrecompensed services in the Philippines.  On the same day Antonio Sedeno, rector of the Jesuits at Manila, writes a letter commending Sanchez for this present embassy, and recounting his past services to the Philippine colony.  On June 26 Bishop Salazar writes a short letter, regarding some points outside of Sanchez’s commission.  One of these concerns the respective precedence of the bishop and the Audiencia on public occasions.  The bishop also describes the quarrels between the president and auditors of the Audiencia, and his success in reconciling these differences.  He has delivered, although against his better judgment, certain prisoners to the Inquisition, in obedience to a royal decree.  A letter from the Audiencia of the Philippines to the king (dated June 26), recommends an increase in the rate of tribute paid by the Indians; the money thus obtained could be used to pay the soldiers, which would greatly improve the standard of military service in the islands.  The colonial treasury is greatly embarrassed by heavy expenses, and the salaries of the Audiencia would better be paid from Mexico; then the encomiendas of Indians now taxed for that expense could be assigned to the soldiers who have so long been serving in the Philippines without pay.  The king is asked to make an annual appropriation for the military and marine expenses of the islands.  Father Sanchez is recommended by the Audiencia also, as their envoy to the home government.  Their dissensions are now all settled, and some matters which caused these disagreements are referred to the king for his decision.  They notify him of certain changes which they have made in the customs tariff of the islands, especially on the Chinese trade; it appears therefrom that the economic dependence of the Philippines on China is very close, especially in the matter of supplying food and cattle.  Certain extension of authority which had been granted to the bishop is asked by the Audiencia for him.  The participation of the Spaniards in the rich Chinese trade has aroused the jealousy of the Portuguese in India, who are endeavoring to shut out the Castilians from that country; the king is asked to take such measures as he deems best in this matter.  Complaint is made that a certain Mexican officer has gone, in disobedience to his orders, to China, apparently to trade.

Pedro de Rojas, a member of the Audiencia, also writes (June 30) in commendation of Sanchez.  He relates the dissensions in the Audiencia over the appointments to offices, and asks for royal action which shall settle this difficulty.  He seconds the request made in other letters for the removal of the Audiencia, provided a capable and honest man be selected for governor, and gives advice regarding the conduct of colonial affairs.  He complains of the injury to the interests of the colony which results from the Chinese trade in silks and other luxuries, and advises that it be stopped; then the Chinese will bring cattle,